hoq sophia

QUALITY FUNCTION

DEPLOYMENT HOUSE OF QUALITY for Sainsbury’s

Sophia Sedighi N0568448

Abstract In this paper I have gathered Sainsbury’s voice of customer and developed a house of quality.

By the mean of house of quality and Kano plot I was able to suggest possible recommendation and at the end discussed other methods that can combine with QFD for

improvement.

Supervisor’s Name: Dr. Chris Mccollin

Module Name- Business Operations &

Reliability Management COMP 40161

Course Work 2

1 | P a g e

Contents Description of Sainsbury’s mission and KPI’s .......................................................................................... 2

Financial KPI’s ...................................................................................................................................... 2

Non-financial KPI’s .............................................................................................................................. 2

Sainsbury’s mission statement ........................................................................................................... 2

Sainsbury’s customer’s requirements..................................................................................................... 3

Combining some of the requirements .................................................................................................... 3

Paired Comparison chart ........................................................................................................................ 4

Most important requirements ................................................................................................................ 5

Less important requirement ................................................................................................................... 5

Kano plot: ................................................................................................................................................ 5

Processes ................................................................................................................................................. 6

Importance weighing: ............................................................................................................................. 6

Affinity diagram for what’s ..................................................................................................................... 7

Tree diagram for what’s .......................................................................................................................... 8

Table of quantitate indicators for processes .......................................................................................... 9

Direction of improvement description ................................................................................................... 9

Relationships (Impact of Technical Response on Customer Needs) ..................................................... 10

Affinity Diagram for processes .............................................................................................................. 10

Tree diagram for processes................................................................................................................... 11

Waste process flowchart ...................................................................................................................... 14

Negative correlations ............................................................................................................................ 15

Description of competitive evaluation.................................................................................................. 15

Description of Technical evaluation ...................................................................................................... 15

Customer satisfaction performance ..................................................................................................... 16

Goal and Improvement Ratio ................................................................................................................ 18

Sales Point and Raw Weight and Normalized Raw Weight .................................................................. 19

Cumulative Normalized Raw Weight .................................................................................................... 20

Priorities of substitute quality characteristics ...................................................................................... 21

Negative Impacts .................................................................................................................................. 21

Kano Diagram ........................................................................................................................................ 22

Recommendations ................................................................................................................................ 22

Conclusions ........................................................................................................................................... 24

Bibliography .......................................................................................................................................... 26

2 | P a g e

Description of Sainsbury’s mission and KPI’s

Financial KPI’s Sainsbury’s address is registered at England, London, R/O full postcode: EC1N 2HT, with registration

number of 03261722, primary UK SIC (2007) code: 47110. Sainsbury’s is a private limited company

under name of BURGINHALL 921 LIMITED and the last change of name was on 07/02/1997. Latest

accounts date 31/03/2014, latest revenue (turnover):23,919,000 and the latest No of employees is

159,600. Number of shareholders is 1, and its trade is the retail of food throughout the UK. Number

of companies in corporate group are 58. The director of the company from 2010 is Ms Helen

Elizabeth Buck. (FAME, 2015)

Company name year Turnover th GBP

Profit (loss) for period th GBP

Total assets th GBP

Profit margin%

Number of employees

Tesco stores Limited 2013 42,547,000 1,372,000 30,740,000 3.99 185066 Sainsbury’s supermarket Ltd

2013 23,919,000 614,000 9,924,000 3.39 159,600

WM Morrison supermarkets P L C

2013 17,680,000 -238,000 10,729,000 -1.00 127,403

Waitrose Limited 2013 5,640,900 96,800 2,892,700 1.93 54,335 Aldi stores Limited 2013 5,271,853 198,058 2,935,566 4.95 16,781 Iceland Foods Limited

2013 2,699,261 139,524 1,601,422 5.98 24,135

Figure 1: Peer analysis of Sainsbury's with 5 same companies (FAME, 2015)

As it can be noted from figure 1, Tesco had the most turnover and profit, and the highest total assets

and the most number of employees in compare with other 5 companies, Sainsbury’s has second

number of employees in this comparison and also second highest turnover, Surprisingly Iceland Ltd

has the highest percentage of profit margin and it follows by Aldi Limited and Sainsbury’s is 4th.

Non-financial KPI’s Sainsbury’s claims to be the best for food and health; first major supermarket to implement new

multiple nutritional labelling, six new lines added to their My Goodness! Range and removed nearly

11tonnes of salt annually from customers’ diet, introduced calorie labelling to their Winemakers.

Sainsbury’s invested £1 million in research and development to support British farming, and claims

to be UK’s leading retailer of British apples and pears for fifty years, leader in Greenpeace Tuna

League 2014 for use of sustainable tuna. Sainsbury’s achieved of putting all store waste to positive

use. (Sainsbuty's, 2014)

Sainsbury’s mission statement Sainsbury’s has revealed a new customer commitment; live well for less. Sainsbury’s helping

customers to enjoy more quality products at competitive prices. (press, 2013)

On the first of June 2002 Sainsbury’s revealed:

"Our mission is to be the consumer's first choice for food, delivering products of outstanding quality

and great service at a competitive cost through working 'faster, simpler and together."

Sainsbury’s set 20 challenging targets for itself to reach by 2020, Sainsbury’s believes that their

values underpin their strategy. Sainsbury’s benefits from 24 million customer transactions each

week, 161,000 staff and over 2,000 direct supplying sites in over 55 countries. Providing great food

3 | P a g e

at fair price is one of their most important responsibilities, consumers care about where the

products come from and they put their trust in their hands to do the right thing on their behalf,

respect for environment is the other important responsibilities. Sainsbury’s is aiming to be the UK’s

greenest grocer. (Sainsbury's, 2015)

Sainsbury’s customer’s requirements A table of Sainsbury’s customer requirements provided after putting together a brainstorming of

Sainsbury shoppers.

1 More car park More car park for parents and child

2 Assist with packing At checkout specially with elderly, parents, disabled

3 Two customer service staff There should be at least two staff at customer services

4 More staff at check out So there will be no queues

5 Clean toilets Toilets should smell fresh, clean all the times and tissues papers and sanitary provided

6 Reduce Café prices Prices should be cheaper specially for customers shopping on the day

7 Relevant nectar card vouchers

Nectar card vouchers should be more relevant to individuals shopping habits

8 More shopping trolley stations

So access to shopping trollies is easier

9 Free delivery for loyal customers

Free delivery for customers do their weekly shopping at Sainsbury’s

10 More brand names There should be more brand names available for each product

11 Clear offer labels Offer labels should be clear and in stock

12 Fitting room accessibility Fitting room should be open during all store opening hours

13 Wider entrance and exit doors

Main doors for entrance and exit should be bigger

14 Card payment facility at fuel pumps

The fuel pump should have a card payment facility

15 More incentives There should be more incentives for new and existent customers

16 A wider range of homewares A wider range of homewares such as sofa, tables

17 24 hour opening Customers would like to benefit from more opening hours

18 In store opticians At the moment Tesco benefits from in store opticians

19 Enough staff at shop floor More customer service staff on the shop floor

20 Reducing waste Reduce the store and customers waste to minimum

21 Clear labelling Clear labelling on sugars, fats and salt in food

22 British products/farmers Provide vegetable, fruit and meat from British farmers

Combining some of the requirements It’s not necessary to use both requirements of more customer service staff on the shop floor and at

least two customer service staff at all the times, these requirements can combine in to one

requirement.

Also not necessary to use both clear labelling on sugars, fats and salt in food and offer labels should

be clear and in stock as a requirements in the house of quality, these requirements combined in one

requirement too.

4 | P a g e

Requirement 10 and requirement 16 can be combined in to 1 requirement.

Paired Comparison chart

Item No Score Description Comparison

1 7 More car park for parent and child 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

2 8 Assist with packing at checkout for disabled or elderly

2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

3 5 At least two customer service staff at all the times

3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

4 12 More staff at check out so there will be no queues at check out

4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

5 11 Toilets should smells fresh at all times, provide tissues to dry hands

5 5 5 5 5 5 5 5 5 5 5 5 5 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

6 10 Café prices should be lower for Sainsbury’s shoppers

6 6 6 6 6 6 6 6 6 6 6 6 6 7 8 9 10 11 12 13 14 15 16 17 18 19

7 5 Nectar card vouchers should be more relevant to individuals shopping habits

7 7 7 7 7 7 7 7 7 7 7 7 8 9 10 11 12 13 14 15 16 17 18 19

8 1 More shopping trolley stations 8 8 8 8 8 8 8 8 8 8 8 9 10 11 12 13 14 15 16 17 18 19

9 15 Free delivery for loyal customers 9 9 9 9 9 9 9 9 9 9 10 11 12 13 14 15 16 17 18 19

10 13 There should be more brand names available for each product

10 10 10 10 10 10 10 10 10 11 12 13 14 15 16 17 18 19

11 7 Clear labelling on sugars, fats and salt in food

11 11 11 11 11 11 11 11 12 13 14 15 16 17 18 19

12 4 Fitting room should be open during all store opening hours

12 12 12 12 12 12 12 13 14 15 16 17 18 19

13 7 Main doors for entrance and exit should be bigger

13 13 13 13 13 13 14 15 16 17 18 19

14 17 The fuel pump should have a card payment facility

14 14 14 14 14 15 16 17 18 19

15 7 More incentives for new and existent customers

15 15 15 15 16 17 18 19

16 6 British products/farmers 16 16 16 17 18 19

17 18 24 hour opening 17 17 18 19

18 8 In store opticians 18 19

19 7 Reducing waste

5 | P a g e

Most important requirements 24 hours opening is the highest scored requirement, Tesco is a big competitor and benefits from

being 24/7, Sainsbury’s customer if they need something at night time they will go to Tesco’s.

The card payment facility on the fuel pump is the second high requirement, if the store is not open

customers passing Sainsbury’s fuel station will go to Tesco’s or other 24hours fuel station, some

Morrison stores have this facility, and also it makes the process of refuelling the car quicker and you

can avoid waiting in the queue to pay.

Free delivery for loyal customers is the other high requirement, customers who always shop at

Sainsbury’s would like to benefit from special offer, Iceland is not a direct competitor for Sainsbury’s

but they have recently started free delivery for each customer, the expectations has risen from this

strategy has been made. I read an interesting article in The Telegraph about how supermarkets

changing in the year 2075, and what I found related to this topic was that John Timpson mentioned a

driverless white vans that delivers the grocery to your house drop box and he mentions people are

more interested in free deliveries in future (Timpson, 2015).

Less important requirement More shopping trolley stations is not very important as there are usually enough to reach.

Sometimes there is no baskets at front entry, or some of trolley stations around the carpark are

empty and customer has to walk far to find one.

Kano plot: Delighters:

24 hour opening


Free delivery for loyal customers

One Dimensional:

British products/farmers

Clear labelling on sugars, fats and salt in food

Looking after their environment(reduce waste)

Must-Be’s:

Toilets should smells fresh at all times, provide tissues to dry hands

There should be more brand names available for each product

More staff at check out so there will be no queues at check out

6 | P a g e

Processes A table of process has been provided after a good investigation of Sainsbury’s website and other

related sources.

processes description

1 Offer and promotion process The process of deciding on which product and when should go on offer, and apply it to product in store and online

2 Card payment process The process of dealing with front-end and back-end company that provides the service, the number of card machines needed

3 Employing process The process of deciding who to employ and how many for which department

4 Building(construction) process The process of building trolley stations, fitting rooms, make extra space for car park, shelves…

5 Training process The process of training new staff and exciting staff

6 Cleaning process The process of keeping the whole store clean and hygiene

7 producing process The process of producing the foods for store

8 Check out process The process of customer goes to checkout point, scanning items and makes the payment

9 storing process The process of storing items that can’t go on the shelves yet in store

10 Process of re-paint the car park The process of remove the old paint and repainting it to achieve new layout

11 waste process The process of reducing the waste to minimum

12 Labelling process The process of putting price tag on shelves, mix and match labelling or reduced labels on reduced items

13 Marketing process The process of offering new incentives for customers , relevant nectar vouchers and advertising

14 Supply chain process The process of contacting warehouse, ordering, logistics, storing and receiving the products at store

15 Packaging process The process of packaging the products that Sainsbury’s itself produces and also packaging the agile products, stop them from damaging from ordering to receiving it in store

16 Ordering(purchasing) process The process of deciding what to buy and how many and where from

17 displaying process The processes of receiving the products from warehouse to going on the shelves

18 Reducing process The process of reducing price on the foods which are running out of date

19 Maintenance process The process of inspecting, reporting and fixing any problems with facilities

20 Home-delivery process The process of delivering online orders

Importance weighing: Based on HOQ employing process has the highest weight, and then marketing process and then offer

and promotion process, these processes have priority to other processes to improve.

7 | P a g e

Affinity diagram for what’s An affinity diagram displayed below with the help of students ideas.

Great offers

cheaper cafe prices for customers

relevent nectar card

vouchers

free delivery for royal

customers

more intencive for new

customers

Variety of products

lots of brand name available of each product

great range of homeware

Respect the environment

reducying waste

Well labelling

clear labelling on sugars,

fats and salt

clear labelling on mix and

match items

clear labelling on offers and

sales

Great quality

British products/far

mers

Acceccebility

24 hours opening

Well maintained

facilities

enough parent and child

parking spaces

access fitting room at all the

times

in store optician

card payment facilities at fuel

pump

clean toilet

wide entrance and exit doors

lots of shopping

trolley stations

Staff management and training

no queue at checkout

enough staff at costumer

service and shop floor

assist with packing if needed

8 | P a g e

Tree diagram for what’s

satisfiedcustomers

reasonable offers

low cost cafe prices for customers

free delivery for

loyal customers

more intensive for new and existing

customers

relevent nectar voucher

good qualityquality

suppliersBritish

products/farmers

good customer services

staff trainingsassist with

packing with elderly,parents

minium time of waiting for checkout

enough staff at checkout points

at least two customer services

good surrounding

access to fitting room all the times

well maintenance facilities

card paymment facility at fuel pump

clean toilets

in store opticionenough parent

and child parkings

lots of shopping trolly stations

looking after their environment

reducing waste

9 | P a g e

Table of quantitate indicators for processes process quantitate indicator target

Offer and promotion process number of new customers per day in one store

5%

Card payment process number of complains per day 1

Employing process Turnover of staff per month per store 1

Building process budget per year £1mn

Training process Number of training sessions per month 2

Cleaning process number of complains per week 5

producing process number of customer complains of packaging or quality per day

5

Check out process number of check out process took more than 10minutes per day

2

storing process number of items out of stock per day 2

Process of re-painting the car park

Number of parents couldn’t park in parents and child spaces per day

2

waste process The amount of food wasted and not been used positively

0

Labelling process number of items with no label or wrong label per day

0

Marketing process Percentage of new customers per day for one store

5%

Supply process number of damaged, missed, delayed items per day

0

Packaging process number of items with no sugar, salt, calorie information’s

0

Ordering(purchasing) process number of none UK fruit, veg, meat per day

%10

displaying process items out of stock per day 2

Reducing process items out of date per day 0

Maintenance process number of damaged facilities per day 0

Home delivery process Cost of delivery per customer per order 0

Direction of improvement description - The direction of improvement for offer and promotion shows that this process needs to

improve the target is to have 5% of the customers shopped that day be new customers.

- The direction of improvement for employing staff shows this process needs improvement,

this means staff are not happy and leave the company or find similar jobs with better salary

therefore this process should reach the target of 2 turnover of staff per month per store

- The waste process needs no improvement as already it reached the target of zero waste

- The packaging process doesn’t need improvement as there is no complains on labelling the

products, all the foods arrive to store have clear labelling of sugar, salt and fat

- Maintenance process needs to improve, the expectations is to have no out of order or

damaged facilities with in the store, at the moment most of the stores have out of order

facilities such as hand dryers, cash machines and etc.

- The demand for British product is high, there for the ordering process needs to improve too,

target says out of fruits, veg and meats 10% order could be non-British, which is a high

target, as most of the fruits are from Spain and nearby countries.

10 | P a g e

Relationships (Impact of Technical Response on Customer Needs) In the HOQ the relationship between employing process and requirement of no queues at

checkout is 9, it is obvious that management needs to monitor the footfall and the peek

time of shopping hours and makes sure there is enough staff in the store.

But this relationship between more staff, less queue is changing. Sainsbury’s new

smartphone app lets customer’s avoid checkout queues, the app allows you to choose the

products from home, and then you go to store and scan those items by the app and put

them in the bag then pay for it with their smartphone without even having to go to

checkout (Hart, 2014). This program was expecting to go live at 2015 for nectar card holders

but still there is no news of it. And this idea won’t be practical for elderly people.

For having the store open 24 hours and have in store optician again the relation between

these requirements and employing process has been rated 9. Sainsbury’s has to be aware of

the problems of employment with 24 hour opening, for example Tesco’s recruits have to

agree working anti-social hours, the new contract said staff has to commit to “flexibility

plan” and this affected some of the recruits (Craven, 2011).

24 hours opening has interrelationship 9 with 4 processes, employing process mentioned

before, the other processes are card payment process, card payment method should be

available if there is no staff at checkout at night times, checkout process in this case is to

have a self-checkout machines available and also the marketing process, mainly because you

can use 24 hour opening as an advantage to competitors and use it in marketing methods.

Again for free delivery for loyal customers I marked it 3 in relation with marketing for the

same reason as above with less impact.

There is no interrelationship between installing card payment method for fuel pumps with

employing process and supply process, but it shares mark 1 with marketing, offer and

promotion and training processes. Staffs at fuel station needs to get trained to the new

System.

Affinity Diagram for processes

HR

employing process

training process

cunstruction

waste process

re-painting process

maintenance process

cleaning process

building process

displaying the item

displaying process

ordering process

marketing process

storing process

producing process

charging price for item

offer and promotion

process

card payment process

checkout process

labelling process

reducing process

delivery

home delivery process

packaging process

supply chain process

11 | P a g e

Tree diagram for processes

happy customer

supply process

waste process

packaging process

home delivery process

checkout process

card payment process

labelling process

offer and promotion

process

reduce process

marketing process

displaying process storing process

producing process

ordering process

building process

maintenance process

cleaning process

re -painting process

employing process

training process

12 | P a g e

Yes

Yes

NO Yes

No

No Yes

Customer arrives

at the car park

Finds suitable

space to park

Yes

Parks

the car

No

Parks

unhappy

Leaves the

super market

Customer walks to find a

trolley

Finds one

straightaway

Yes

Walks in to

the store

No

Unhappy

finds one

after a search

Customer walks in to the

store

Needs customer

service

Customer service

available

Customer starts

shopping

Finds what he/she

is looking for

A B C

Goes to

checkout Looks for staff

for help

Find a

staff

Unhappy carries

out shopping

Customer

waiting

unhappy

No

Staff assists

the customer

13 | P a g e

Yes

A B

Customer

service available

in 5 minutes

Customer

served and

leaves the store

Yes

No

Customer

leaves

C

There is

queues at checkout

Customer

waits

unhappily

14 | P a g e

Waste process flowchart

Source: Sainsbury’s 20x20 Factsheet Quarter 3 2014/15

Sainsbury’s marketing strategy to save the waste:

Sainsbury’s head of brand communication, Mark Given has revealed “A fifth of the food that is

bought in our stores is wasted and 60% of that is perfectly edible. Not everyone can plan a meal

perfectly and people need a bit of inspiration to help them”. Therefore Sainsbury teamed up with

p

Sain

sbu

ry’s

Can

no

ck d

epar

tmen

t

No

Yes

Yes

No

Yes

No

Product goes

on shelves

Product

left at the

end of the

day

Product goes on

offer

Is the

product left

suitable for

charity?

Charity partner

collects it from

store

Is it

suitable for

animals?

Products including

bread and fruits goes

for animal

feed.(Safari Park)

Picked up by the

empty Sainsbury’s

lorry that has just

delivered food

Waste is picked up by a

Biffa lorry from

Sainsbury’s depot and

taken to Cannock

The food waste is sent

to big silos that breaks

down the food into bio

methane gas

Gas generates

electricity at the AD

plant and used by local

farms

Electricity is directly

supplied to the

supermarket via a

1.5km cable

Preparation phase Executive phase Final phase

Sho

p f

loo

r d

epar

tmen

t Su

pp

ly c

hai

n D

epar

tmen

t

15 | P a g e

google and created new way of advertising and reducing consumers waste. A new development in

the digital advertising world is set to make click-through dismissed. Following the development of

the Food Rescue app from Sainsbury’s, the famous supermarket brand has teamed up with Google

to launch the first ever voice-activated banner ad.

The advert will act as in the same way as the app; you will be able to speak the names of the

ingredients you need to use up, you’ll then presented with a list of relevant recipes which include

those ingredients (Carter, 9 June 2014).

Negative correlations correlation process process explanation

Strongly negative

Supply process

Cleaning process

As a part of the supply chain process when orders arrives by the lorry to store the process of emptying the products and storing and unpacking to go on shelves leaves some cleaning to do.

Strongly negative

ordering process

waste process

The ordering has to kept to minimum in favour of waste process, so less products gets wasted

negative Re-painting the car park

Maintenance process

By re-painting the car park there is more maintenance process involve

Strongly positive

Displaying process

Labelling process

The labelling process should be right otherwise it effects the space it should be displayed

Strongly positive

Supply chain process

Packaging process

For a good supply process without any damages there is a need for a good packaging process

Strongly positive

Reducing process

Producing process

More you produce its more chance of some left at the end of the day and had to get reduced

Description of competitive evaluation - Competitors believe Nectar vouchers are not relevant to customers shopping habits, at

checkouts you don’t see customers using their vouchers on milk, fruits and other goods

there for it ranked 3 out of 5.

- Sainsbury’s ranked Tesco 5 out 5 for incentives and offers, Tesco provides offers that makes

attention to shoppers, even quality in Tesco is not better and the variety of products is less,

tempting offer takes the customers to Tesco

- Competitors scored Sainsbury’s and Tesco 2 out of 5 based on delivery services, Iceland

provides free delivery for all customers

- Tesco scores 5 out of 5 both in 24 hours opening and in0store optician as it’s the only

supermarket provides these services

Description of Technical evaluation - Sainsbury’s scores 1 out 5 on reducing process, Customers from Tesco and Morrison’s can

find more reduced item in store and the reduce price is reasonable in these stores, where as

in Sainsbury’s reduced price is usually about 10%

16 | P a g e

- Sainsbury’s scores 2 out of 5 in re-painting the car park process, as the spaces available in

Tesco and Morrison’s better for parent and child and nearer to main entrance

- Sainsbury’s and Tesco scores Morrison’s 1 out of 5 on marketing as there is less advertising

on Morrison’s than Tesco and Sainsbury’s

Customer satisfaction performance

For measuring customer satisfaction a survey took place of Sainsbury’s customers.

Very poorly

poorly neutral well Very well

Does not apply

Performance weight

How often you can park in parent and child car park?

2.03

How often do you get assistant with your packing?

1.5

How well is customer services?

3.8

How often you can check out quickly?

3.01

How clean is the toilets?

3.5

How do you find café’s prices?

3.2

How relevant is your nectar vouchers?

2.02

How easy you can access shopping trollies?

5.00

How do you rate delivery costs are fare?

3.06

How well is Sainsbury’s at reducing wastes?

5.8

How do find the variety of each product?

5.00

How clear is labelling for sugar, salt, fat?

5.5

How often can you access the fitting room?

3.7

How do you rate the entrance and exit doors are convenient?

2.00

17 | P a g e

How well is the payment method for fuel station?

2.9

How do you rate the offer and promotions in Sainsbury’s?

1.9

How many of the products are from British farms?

3.3

What do you rank the Sainsbury’ opening hours?

2.9

How important is the in store optician?

3.03

Figure 2: An example of survey filled in by myself

Figure 3: Homogeneous Customer Performance

50150

500

100 800

100

200

300

400

500

600

very poor poor neutral good very good

in store optician

in store optician

18 | P a g e

Goal and Improvement Ratio requirements Current

satisfaction performance

Goal Improvement Ratio

More car park for parent and child 2.03 5 52.03⁄ = 2.49

Assist with packing at checkout for disabled or elderly

1.5 5 51.5⁄ = 3.33

At least two customer service staff at all the times

3.8 5 53.8⁄ = 1.31


3.01 4 43.01⁄ = 1.32


3.5 4.5 4.53.5⁄ = 1.28

Café prices should be lower for Sainsbury’s shoppers

3.2 3.5 3.53.2⁄ = 1.09


2.02 3.5 3.52.02⁄ = 1.73

More shopping trolley stations 5.00 5 5.005.00⁄ = 1

Free delivery for loyal customers 3.06 3.9 3.93.06⁄ = 1.27

Reducing waste 5.00 5 55⁄ = 1


4.5 5.00 5.004.5⁄ = 1.11


4.8 5.00 54.8⁄ = 1.04

Fitting room should be open during all store opening hours

3.7 5.00 53.7⁄ = 1.35


2.00 4 42⁄ = 2


2.9 5 52.9⁄ = 1.72

More incentives for new and existent customers

1.9 5 51.9⁄ = 2.63

British products/farmers 3.3 4 43.3⁄ = 1.21

24 hour opening 2.9 5 52.9⁄ = 1.72

In store opticians 3.03 3.5 3.53.03⁄ = 1.15

As you can see on table above the highlighted requirement: more incentives for new and existent

customer, assist with packing at check out and more car park for parents and child has the highest

improvement ratio. There will be recommendations regarding these results on the table of

recommendations.

19 | P a g e

Sales Point and Raw Weight and Normalized Raw Weight If customer importance, goal value and the sale point value are high, some experts say it’s a form of

“double accounting”. The only harm in double accounting is that customer need’s priority (raw

weight) might be too high. With all these factors high, this customer need must be the priority.

(Cohen, 1937)

requirement Sales point

Relative Customer

Importance

Raw Weight (Customer importance.

Improvement Ratio. Sales point)

Normalized Raw Weight

More car park for parent and child

1.2 24 24x2.49 x 1.2 = 71.712

71.7121588.162⁄ =0.04


1.2 35 35x 3.3 x1.2 = 138.6 138.61588.162⁄ =0.08

At least two customer service staff at all the times

1 20 20 x 1.31 x 1 = 26.2 26.21588.162⁄ =0.01


1.2 64 64 x1.32 x1.2 = 101.37

101.371588.162⁄ =0.06


1 60 60x 1.28 x 1 = 76.8 76.81588.162⁄ =0.04


1.2 58 58x 1.09 x1.2 =75.864

75.8641588.162⁄ =0.04


1.2 25 25x 1.73 x1.2 = 51.9 51.91588.162⁄ =0.03

More shopping trolley stations

1 9 9 x 1 x 1 = 9 91588.162⁄ =0.005

Free delivery for loyal customers

1.5 78 78x1.27 x 1.5 =148.59

148.591588.162⁄ =0.09

Reducing waste 1 30 30 x 1.01 x 1 = 30.3 30.31588.162⁄ =0.01


1.1 52 52x 1.09x1.1 =62.348 62.3481588.162⁄ =0.03


1.2 34 34x 1.04 x1.2 = 42.432

42.431588.162⁄ =0.02


1.2 12 12x 1.35 x 1.2 = 19.44 19.441588.162⁄ =0.01


1 44 44 x 2 x 1 = 88 881588.162⁄ =0.05


1.2 83 83x 1.72 x 1.2 =171.3 171.31588.162⁄ =0.10

More incentives for new and existent customers

1.5 34 34x 2.63 x 1.5 =134.13

134.131588.162⁄ =0.08

British products/farmers 1.2 28 28x 1.21 x 1.2 =40.656

40.6561588.162⁄ =0.02

24 hour opening 1.5 84 84x 1.72 x 1.5 =216.72

216.721588.162⁄ =0.13

In store opticians 1.2 60 60x 1.15 x 1.2 =82.8 82.81588.162⁄ =0.05

Total Raw Weight 1588.162

20 | P a g e

As it’s highlighted above in grey, you can see which requirements is more important to the

development team.

Customer performance should be treated as more important than sales potential. (Cohen, 1937)

To be able to count the Normalized Raw Weight, we need Relative Importance, so the results are

between 0 and 1, Relative Importance is the importance of a requirement between 1 and 100.

Cumulative Normalized Raw Weight In this case we have to put the requirements in descending order base on their Normalized Raw

Weight.

Requirements Normalized Raw Weight

Cumulative Normalized Raw

Weight

24 hours opening 0.13 0.13

The fuel pump should have a card payment facility 0.10 0.23

Free delivery for loyal customers 0.09 0.32

More incentives for new and existent customers 0.08 0.40


0.08 0.48


0.06 0.54

In store opticians 0.05 0.59

Main doors for entrance and exit should be bigger 0.05 0.64


0.04 0.68


0.04 0.72

More car park for parent and child 0.04 0.76


0.03 0.79


0.03 0.82

Clear labelling on sugars, fats and salt in food 0.02 0.84

British products/farmers 0.02 0.86

At least two customer service staff at all the times 0.01 0.87


0.01 0.88

Reducing waste 0.01 0.89

More shopping trolley station 0.005 0.895

21 | P a g e

Priorities of substitute quality characteristics P1 P2 P3 P4 P5 P6 P7 P8 P9 P1

0 P11

P12

P13

P14

P15

P16

P17

P18

P19

P20

NRW

R1 0.12

0.36

0.04

0.36

0.04

0.04

0.04

R2 0.24

0.72

0.72

0.08

R3 0.09

0.01

0.01

0.01

R4 0.54

0.06

0.06

0.54

0.06

R5 0.04

0.12

0.36

0.36

0.04

R6 0.36

0.04

0.04

0.12

0.04

0.04

0.04

R7 0.27

0.03

0.09

0.03

0.27

0.03

R8 0.45

0.45

0.05

0.005

R9 0.81

0.27

0.27

0.09

R10

0.09

0.01

0.09

0.09

0.09

0.01

0.01

0.01

0.03

0.01

R11

0.09

0.09

0.27

0.03

0.27

0.09

0.03

R12

0.06

0.06

0.02

0.18

0.18

0.02

0.18

0.18

0.02

R13

0.01

0.01

0.01

R14

0.45

0.05

R15

0.1

0.9

0.3

0.1

0.1

0.1

0.3

0.9

0.1

R16

0.72

0.08

0.72

0.24

0.08

R17

0.18

0.18

0.18

0.18

0.18

0.02

R18

1.17

1.17

1.17

1.17

0.13

R19

0.45

0.05

0.15

0.05

0.15

0.15

0.05

p 2.5

2.07

3.3

1.22

1.23

0.53

0.49

3.08

0.4

0.36

0.16

0.46

2.72

0.36

0.19

0.97

0.09

0.07

1.51

0.51

R=Requirements, P=Process, NRW=Normalized Raw Weight, P=Priorities

The results above shows process 3 (employing process) has the highest priorities, this means this

process has the highest impact on customer satisfaction performance. Process 8 (check out process)

is the second highest priority and process 13 (marketing process) is third.

Negative Impacts In this case, the processes that have been chosen for Sainsbury’s supermarket has no negative

impact on customer satisfaction performance.

22 | P a g e

Kano Diagram

process

low high

Clear labelling-labelling process In store optician-employing process Widening the entrance doors-building process

Reducing waste-waste process British farms products-ordering process Clean toilets-cleaning process Reduce café prices-ordering process More shopping trolley stations-maintenance process

More parents car park- repainting car park process Free delivery-offer and promotion process Extend fitting room opening times-employing process 24 hours opening-employing process

Assist with packaging-checkout process-training process More brand names availability-ordering process

Recommendations recommendatio

n reason plan cost time

Produce more parent and child car park

On Kano Plot it is clear that the requirements for parents car park is high and process of re-painting is low, therefore the store is at risk against competitors. The third highest score in improvement ratio from HOQ

Clear the old marks with thinner, re-design the car park and paint

£1000 5 days

Reduce the time and resources on cleaning the toilets

On Kano Plot the requirements are low but process is high this means over kill

Reschedule the shifts No cost Short time

Provide free delivery for loyal customers

Based on Kano Plot it is low-high, therefore it is in danger of losing customers

Make new announcement and advertise it

Cost of advertising could be low, Sainsbury can advert it in store, on its delivery vans

1 week to make new advertisements

req

uir

eme

nts

low

h

igh

23 | P a g e

Cut cost and resources on reducing waste

It’s overkill, the requirements compare the effort is low

the process doesn’t need more training, no more employing, no more research

No cost Long term

Sainsbury’s should advertise the fact they provide more brand names in the store compare to competitors

The requirement is high and ordering process is high too. Scored second highest improvement ratio

Advertise it TV advert costs are high

Short term

The labelling process doesn’t need to change

Both requirement and process is low

N.A No cost Long term

Fitting rooms should be kept open all the time

It’s a high requirement but there are not enough staff to meet the demand

Employ full time staff in charge of fitting room

£500 per week before tax

Long term

Sainsbury’s should apply card payment devices on fuel pumps

The requirement is high, therefore is at risk of losing customer’s and ranks second highest normalized raw weight and the second highest score in Relative Customer Importance

Order the device, apply it to fuel pumps and computer systems

For one fuel station with 4 card payment machine £1000

Long term

Sainsbury’s should consider more incentives for new and existing customers

Sainsbury is at risk of competitors like Tesco’s, Aldi and Lidl- the process of offer and promotion is very low

This year Sainsbury’s cut points from two for every £1 spend to just one, while customers will also no longer receive a point when they use their own bags. This made customers angry and The Guardian noted Sainsbury’s is at risk of losing their customers. Try to soften customer’s anger Sainsbury’s launched get 10 points per litre of fuel purchase (Bachelor, 10 April 2015) Sainsbury’s can remove the first cut down on points and think of new offers to compete with competitors

£500 per day

Long term

24 | P a g e

Sainsbury’s can advertise the fact cost of their orders are from British farmers

The requirements are high, people should now about it

Advertise it in TV, for all advertising above can use one advert

Cost of advertising in TV-high

Short term

Consider 24 hour opening

Requirement is high, at risk of its competitors, and the highest normalized raw weight and the highest score in Relative Customer Importance

based on The Guardian Sainsbury’s axe hundreds of UK store jobs, it is also replacing night shifts with early morning and evening shifts (Butler, 2015) but considering HOQ Sainsbury needs to employ night shift staff

One store considering 5 staff in store plus electricity £2500 per week

Long term

Improve employing process

Employing process rated highest in priority raw in HOQ

Sainsbury’s should choose the HR staff very carefully, make sure they are the best at their job as this process is very important, to improve the overall process Sainsbury’s can carry out trainings for HR department and to make the application process better Sainsbury’s can upgrade its online application every 6 month, make sure it’s easy to use. Sainsbury’s can use mystery shoppers to check and improve employee skills in dealing with customers

Provide training every 6 month £1000 per session considering have to pay the staff too, upgrade website each 6 month £200

Long term

Improve check out process

Based on second priorities row in HOQ

as mentioned before Sainsbury’s developed a new smartphone app to make the checkout process faster, but still it’s not functional therefore Sainsbury’s can apply more self-checkout points, employ more staff at checkouts at peak time so there will be no queues

Cost of adding 4 more self- checkout machine £2000 Have 2 more staff at checkout per week £500

Long term

Conclusions The ideal environment for successful implementation of QFD may not always exist, as the nature of

the businesses are different and engineers have no control on Voice-of-Customer, but teams can still

benefit from QFD. There is two way to tackle these problems:

The Fight ‘Em Approach: aims to accepting the order-processing function to fix the system

25 | P a g e

The Join ‘Em Approach: adapting the product design so it avoids the order-processing system

Most organizations that use QFD stop after developing their HOQ. Some organizations expand it to

some graphs and tables and matrixes that shows the shop floor processes. Cohen explains there are

several reasons why these organizations don’t use the full possibilities of QFD. It is mostly because of

lack of specificity in an essential literature.

In the US they use to usual QFD models: the “Four-Phase Model” and the “Matrix of Matrices”. The

two models are not in conflict, the Matrix of Matrices makes more obvious activities that are implicit

or optional in the Four-Phase Model (Cohen, 1937).

Listening to internal customers is very important and it helps towards real improvements in external

customer satisfaction. External customers are stakeholders and improvement methods are different

but internal customer’s satisfaction is more complicated and time consuming but internal listening is

complementary to external focus.

Several process improvement frameworks and methodologies have been established such as

Taguchi methods and quality function deployment. Complementing these are essential

improvement procedures such as business process re-engineering.

Kanji proposes a pyramid model of Quality Management, which is based on the proposition that to

achieve a high customer satisfaction level, the organization has to improve continuously all aspects

of its operations. To implement Kanji method these steps are required (Pervaiz K. Ahmmed, 17 June

2013):

Delight the customers

People-based management

Continues improvement

Management by fact

There are other technics such as fuzzy logic, artificial neural networks (ANN) and the Taguchi

methods that can be combined with QFD to resolve some of its problems.

Fuzzy logic

The information from questionnaires and interviews used in HOQ rises the uncertainty when try to

analyse the data. Fuzzy logic can be used in order to reduce the rate of uncertainty. Fuzzy logic uses

human linguistic understanding to express the knowledge of the system. The VOC contains opacity

and different meanings. In fuzzy logic-based QFD approach, symbols which represent the customer

requirements and engineering characteristics (strong, medium, weak) are used to fill the relationship

matrix (Kho and Ho, 1996). For example:

Strong relationship [4.0, 10.0]

Moderate relationship [2.0, 8.0]

Weak relationship [0.0, 6.0]

Artificial neural networks (ANN)

ANN can be described as simplified mathematical models of the human being brains but it functions

as computer networks and have the ability to manage systems from their observed behaviours

rather than from a theoretical understanding. ANN has the ability to deal with a large amount of

data.

26 | P a g e

The Taguchi Method

The goal of Taguchi method is to identify parameters that can be controlled and to reduce the

sensitivity of engineering designs to uncontrollable factors known as noises. This method is useful

for the roof of HOQ, optimizing the targets value and improves technical benchmarking at the

bottom of house of quality (Vivianne Bouchereau, 2000).

Some companies based on the nature of their business combine one of these methods to achieve a

improved HOQ, but if combine all these three methods at once with your HOQ superlative results

will distributed.

Bibliography Bachelor, L., 10 April 2015. TheGuardian. [Online]

Available at: http://www.theguardian.com/money/2015/apr/10/sainsburys-cuts-to-nectar-points-

anger-its-customers

[Accessed 10 May 2015].

Butler, S., 2015. Sainsbury's to axe hundreds of UK store jobs, s.l.: The Guardian.

Carter, J., 9 June 2014. MYCUSTOMER. [Online]

Available at: http://www.mycustomer.com/news/google-and-sainsburys-create-new-breed-banner-

ad


Cohen, L., 1937. Quality Function Deployment. 15th ed. Canada: Consulting Editor, John W. Wesner.

Craven, N., 2011. This is Money. [Online]

Available at: http://www.thisismoney.co.uk/money/markets/article-2012945/Tesco-recruits-agree-

working-anti-social-hours.html


FAME, 2015. FAME. [Online]

Available at: https://fame2.bvdep.com/version-

2015330/Report.serv?_CID=120&context=2CTDB9DYGITIOB3&SeqNr=0

[Accessed 16 April 2015].

Hart, S., 2014. DigitalSpy. [Online]

Available at: http://www.digitalspy.co.uk/tech/news/a609019/sainsburys-new-smartphone-app-

lets-customers-avoid-checkout-queues.html#~pcMDrcuMCnnFhn


Kho, L.P. and Ho,C.N., “Frame work of Fuzzy Quality Function Deployment System”, International

Journal of Production Research, Vol. 34,No 2,pp-299-33

Pervaiz K. Ahmmed, M. R., 17 June 2013. Internal Marketing. In: T. &. Francis, ed. tools and

conceppts fpr customer-focused managment. s.l.:s.n., pp. 96-120.

press, 2013. sainsbury's. [Online]

Available at: http://www.j-sainsbury.co.uk/media/latest-stories/2011/20110915-sainsburys-unveils-

27 | P a g e

new-commitment-to-customers-to-help-them-live-well-for-less/


Sainsbury's, 2015. Sainsbury plc. [Online]

Available at: http://www.j-sainsbury.co.uk/responsibility/our-values/


Sainsbuty's, 2014. Annual Report and Financial Statements 2014. [Online]

Available at: http://annualreport2014.j-sainsbury.co.uk/overview/non-financial-kpis/


Timpson, J., 2015. The Telegraph. [Online]

Available at: http://www.telegraph.co.uk/finance/jobs/john-timpson/11611536/In-the-year-2075-

will-supermarkets-still-be-alive-to-the-changing-times.html


Vivianne Bouchereau, H. R., 2000. Methods and techniques to help quality function deployment. An

International Journal, 7(1), pp. 8-19.

28 | P a g e

hoq sophia

Documents

Transcript of hoq sophia